NZD/USD Weakens Amid Dovish RBNZ and Geopolitical Tensions

The New Zealand Dollar (NZD) continues to weaken against the US Dollar (USD), trading in the 0.5720-0.5715 band during Monday's Asian session.

This comes as the Reserve Bank of New Zealand (RBNZ) maintains a cautious stance, while the Federal Reserve has taken a relatively hawkish position, raising interest rates for the first time in three years and indicating at least one additional increase this year.

Economists at Nordea emphasize that the US economy remains resilient, with inflationary pressures showing few signs of easing and the labor market holding up well. They maintain their forecast for two more hikes and warn of a possibility that the Federal Reserve could ultimately tighten more than currently anticipated.